Living Responsibly

LIVING RESPONSIBLY

www.zeppelin.com

1 Foreword

Dear Ladies and Gentlemen,

As a foundation-owned enterprise, every day we conscientiously assume responsibilities toward our customers, our employees, and the public. This CONTENTS is second nature to us at Zeppelin. It is a tradition that we can trace back many decades to a unique Foreword �� 3 pioneer and visionary: Ferdinand Graf von Zeppelin, who founded and gave his name to our company. Company Profile �� 4 His values still define our corporate culture today. From Vision to Innovation �� 4

With this brochure, we invite you to learn about our A Signal for the Future �� 5 enterprise and its many facets. About our commit- Zeppelin Creates Solutions – Worldwide �� 6 ment to sustainability, which we put into practice in connection with and for the benefit of our customers, A Tradition of Responsibility �� 8 our employees, and the public. And about the innova- Lasting Values �� 8 tive spirit that is increasingly driving Zeppelin’s evolution into an integrated services group. Focus on Customers �� 10 This brochure is also an excellent example of how A Strong Partner Offering Security �� 12 we actively practice sustainability and live up to our Farsighted Investments �� 13 entrepreneurial responsibilities. Under the title of Adding Value with Problem-Solving Competence �� 14 “Living Responsibly”, we acquaint you with many practical examples of our everyday work. Protecting the Environment and Conserving Resources �� 16 Innovation and Progress �� 18 Sustainable thinking and actions: we are going to continue on this path with commitment, Responsibility for Our Employees �� 20 persistence, and a strong sense of responsibility. And the successes we achieve on the way will Careers Made Easy �� 22 motivate and spur us on. Encouraging Strengths – Strengthening Skills �� 23 Strong as a Team �� 24 Everything in Balance �� 26 Playing It Safe �� 27

Social Involvement ...... 28 Trust and Compliance �� 30 Education for the Future �� 31 Sponsoring Sports and Culture �� 32 Peter Gerstmann With Commitment and Feeling �� 35 Chairman of the Management Board of ZEPPELIN GmbH Perspectives �� 36 Sights Set on Success �� 36

About this Publication �� 38

2 3 COMPANY PROFILE

FROM VISION TO INNOVATION The Success Story of the Zeppelin Group

The Zeppelin Group looks back on a long tradition. It In order to respond more sensitively to the needs of all started with Ferdinand Graf von Zeppelin (1838- different markets and customer groups, in 2010 the 1917) and his vision of a steerable airship. This led to Group restructured its operations in five Strategic the maiden flight of the LZ 1, his first design, on July 2, Business Units. 1900 and the founding of Luftschiffbau Zeppelin GmbH in 1908, thus kicking off the history of the Since 1993, airships have once again been produced Zeppelin Group. in Friedrichshafen on Lake Constance. Zeppelin Luftschifftechnik GmbH & Co. KG develops and builds Luftschiffbau Zeppelin GmbH was a market success. helium-filled Zeppelin NT (“Neue Technologie”) It built airships in Friedrichshafen for decades and airships. It is owned by Luftschiffbau Zeppelin GmbH operated the first commercial airship service between and ZF Friedrichshafen AG, in which the Zeppelin Europe and the United States, marking the start of Foundation in turn owns a majority stake. civil aviation. But after the 1937 accident at Lakehurst, New Jersey, that destroyed the Hindenburg, the company’s airship activities came to an abrupt halt.

The Zeppelin production facilities were destroyed during World War II, but in 1950 the company rose from the ashes with the establishment of Metallwerk Fried- richshafen GmbH (it was later renamed Zeppelin- Metallwerke GmbH and, in 1995, ZEPPELIN GmbH). That marked a radical change in the Zeppelin Group’s business activities. Initially successful as a manufac- turer of containers and components, in 1954 the com- A SIGNAL FOR THE FUTURE pany acquired exclusive rights to sell and service The Zeppelin Donation of the German People Caterpillar construction machines in West Germany. That launched a new field of business and set a mile- stone in the Group’s history. At the dawn of the 20th century, airships were private fortune was left, seemingly putting the Over the following decades, Zeppelin-Metallwerke regarded as a symbol of innovation and technical construction of a new airship beyond his reach. But GmbH (today’s ZEPPELIN GmbH) steadily expanded its progress. Those veritable giants of the air evoked then the “miracle of Echterdingen” happened: news activities throughout much of Western and Eastern enormous fascination with technology. Consequent- of the disaster unleashed a wave of sympathy and Europe. In 1994 it assumed the role of a holding ly, there was huge public interest when Ferdinand generosity throughout the German Empire. In a spec- company, while existing and newly founded subsi- Graf von Zeppelin set off on a 24-hour test flight in tacular collection campaign, more than six million diaries in Germany and other countries took respon his LZ 4 airship on August 4, 1908. marks came pouring in. The donations enabled Count sibility for actual operations. Other milestones were Zeppelin to continue pursuing his innovative ideas. the expansion of the rental business to include Unfortunately, the voyage came to an unhappy end. He also utilized his new funds to found Luftschiffbau construction and construction site equipment in 2003 After successfully completing the test, the airship Zeppelin GmbH and the Zeppelin Foundation. and, in 2006, the pooling of all activities related to made a stop in Echterdingen near Stuttgart. But be- Caterpillar and MaK engines in a separate company fore it could continue on its way, a storm tore it loose That remarkable episode became known as the called Zeppelin Power Systems GmbH & Co. KG. from its anchorage, causing it to crash into a tree “Zeppelin Donation of the German People”. It was and burst into flames. Count Zeppelin was forced to a key event for the present-day Zeppelin Group, witness his life’s work in ruins. Almost none of his shaping both its history and its corporate culture.

4 5 COMPANY PROFILE

Zeppelin Creates Solutions – Worldwide Organization of the Zeppelin Group

More than 7,000 employees at 190 locations around the The Construction Equipment EU business unit sells The Rental business unit brents out and leases con- world contribute to the Zeppelin Group’s success. Suc- and services Caterpillar construction machines and struction machines and equipment, containers and cess that can also be expressed in figures. For example, Hyster lift trucks. With an overall portfolio of about sanitary systems, equipment and systems for securing sales of 2.55 billion euros in the 2012 financial year. 650 products, backed by application consultancy, construction sites and controlling traffic, aerial work financing, marketing of preowned construction platforms, stackers, agricultural machines, vehicles, ZEPPELIN GmbH is the Group’s holding company. Its machines, and innovative control and monitoring and trailers. It also supports its customers with a legal seat is in Friedrichshafen and its headquarters in systems, this Strategic Business Unit offers custom- range of supplementary services that include analysis Garching near Munich. The Zeppelin Group is organized ers construction site solutions from a single source. and planning of project requirements, application into five Strategic Business Units: Construction Equip- consultancy, logistics, installation and setup, insurance, ment EU and CIS, which are responsible for sales and The Construction Equipment CIS business unit is devo- and maintenance. servicing of construction and agricultural equipment in ted to selling and servicing Caterpillar construction Europe and the Commonwealth of Independent States machines in Russia, Turkmenistan, Uzbekistan, The Power Systems business unit offers system (CIS); Rental, which rents and leases construction Tajikistan, Armenia, Belarus, and Ukraine. Its special solutions in the propulsion and energy industries. machines and equipment; Power Systems, which competencies are in providing solutions for large As an exclusive partner for CAT and MaK brand specializes in drive and energy solutions; and Plant mines. The business unit’s portfolio is rounded out by Caterpillar engines, Power Systems offers customers Engineering, which focuses on building systems for silvicultural and agricultural machines from market- tailored, highly efficient system solutions backed by high-quality bulk goods and liquids. leading manufacturers. comprehensive services for the marine, locomotive, and oil & gas industries as well as for power generation and mobile & stationary applications with outputs from 15 kW to 16 MW.

The Plant Engineering business unit specializes in developing and producing components and plants for handling high-quality bulk goods and liquids. The plants are sold worldwide to customers in the chemical, plastics, rubber and tire, food, confec- tionery and baked goods, and beverage industries.

6 A TRadition of Responsibility

LASTING VALUES The Corporate Culture of the Zeppelin Group

A Foundation-Owned Enterprise Ferdinand Graf von Zeppelin established the Zeppelin Foundation in 1908. It still holds a stake in ZEPPELIN GmbH today, via Luftschiffbau Zeppelin GmbH. Being a foundation-owned enterprise, Zeppelin regards social responsibility and business as inseparable.

Principles and Maxims Deeply ingrained in Zeppelin’s corporate culture are the values of its founder, Count Zeppelin. These values stand for excellence, sustainability, responsibility, and passion. They have been formulated in the “Grafen- sätze”: 10 statements that reinterpret Zeppelin’s values and its identity as a foundation-owned enterprise entirely in keeping with Count Zeppelin’s thinking and approach to life.

This value system links Zeppelin’s unique history to the present while clearly expressing its corporate culture. This culture provides the basis for Zeppelin to act responsibly toward employees, customers, suppliers, business partners, and society.

Living up to Responsibility Zeppelin employees accept responsibility and act sustainably for the benefit of customers and the environment. The success of this holistic approach is reflected in a high level of satisfaction on the part of both customers and employees. And responsible actions are essential for generating long-term confidence in Zeppelin’s performance.

8 Our Commitment RELIABILITY AND INNOVATIONS FOR OUR CUSTOMERS

Grafen STAY ON COURSE.

Zeppelin’s employees base their daily actions on this principle. It expresses values such as integrity and excellence and implies a consistent customer focus. In this sense, Zeppelin–as a foundation-owned enterprise–places enormous value on reliability and stability, also in initiatives to drive growth and build new fields of business.

Zeppelin is an internationally active corporate group that stresses progress and innovation for strengthening its market position. New products and services simplify processes while conserving environmental and financial resources. Within the scope of a collaborative partnership, customers know they can depend on Zeppelin’s competent staff. The focus is on providing custom-tailored solutions.

11 Focus on Customers

A STRONG PARTNER OFFERING SECURITY FARSIGHTED INVESTMENTS

The Zeppelin Group’s investments are long-term in Administration Building in nature. They flow into a wide range of projects for Friedrichshafen renewing and expanding the network of branches, The new administration building that the Plant Engi- building logistical facilities and service and technical neering business unit inaugurated in Friedrichshafen centers and expanding business activities. in 2012 accommodates about 400 employees on gross floor space of more than 9,000 square meters. In order to boost the availability of services and It boasts outstanding energy efficiency, thanks to a respond to customer needs even faster, Zeppelin made green (living) roof, highly effective roof and façade considerable investments in 2012. Employees’ work insulation, and windows with triple glazing. Heat is environments were upgraded to meet new require- supplied by an on-site cogeneration plant that was ments and comply with high workplace design stand- installed by Power Systems business unit. ards. In addition to stressing efficient processes, Zeppelin gives high priority to environmental sustainability. For instance, it includes comprehensive measures for conserving natural resources when planning new buildings. Zeppelin excels with a sound business model and assessing, monitoring, and controlling risks. It is based forward-looking management. It stands out from on a comprehensive planning and reporting system the crowd as a company that offers its customers that includes a quarterly risk report with analyses of security and reliability. Its own stability is an elemen 12 areas of risk and a risk panel that was established Practical Examples tary component of all strategic considerations, which in 2011 to take effective countermeasures for The Böblingen Branch are geared to achieving long-term development goals. mitigating risks. Group-wide early warning indicators In 2011, Construction Equipment EU inaugurated a Zeppelin applies the principles of good management were defined in 2012 to detect any incipient negative sales and service center in Böblingen to serve the along the lines of the German Corporate Governance repercussions on its asset, financial, or profit situation greater Stuttgart area. Its offices and workshops Code. It is also committed to complying with clear and bolster long-term stability. occupy total floor space of 5,420 square meters. The internal rules and a policy of transparency that goes branch sets new standards of environmental friend even further than the current legal requirements. In Long-Term Financing liness with biological water purification, use of rain- 2011, the Group also improved the performance of its Zeppelin attaches great importance to financial water in the washing facility, a solar thermal collector, financial organization by restructuring it into three stability and the ability to take flexible action at and heat recovery. Together, these measures reduce

parts: Group Treasury, Group Controlling, and Account- any time. In the service of these goals, in 2011 it the plant’s CO2 emissions by more than 20 tonnes ing, Taxes and Insurance. signed for a five-year unsecured syndicated loan annually, or 16 percent. from five main banks. In addition, since 2004 Zeppelin has been using capital market-related financing in- Slovak Head Office in Practical Examples struments such as bonded loans. Extensive facilities Banská Bystrica A Rating are also available for sale-and-lease-back trans- Since 2011, the head office in Banská Bystrica has In 2012 Creditreform Rating AG, the leading credit actions, especially for financing the rental fleet. For been the hub for all of Zeppelin’s activities in Slova- rating agency in the German-speaking parts of dealing with possible market turbulences, Zeppelin kia. In the year of its inauguration, Zeppelin received Europe, gave the Zeppelin Group a rating of A. This also keeps a certain minimum of liquid assets on the coveted CE·ZA·AR accolade for outstanding tells creditors, suppliers, and customers that hand. This diversified financing arsenal maximizes the architecture from the Slovak architects’ association. Zeppelin is a reliable partner in good financial stand- Group’s ability to take action when required. The jury praised the building’s esthetics as well as its ing. The rating report stresses that Zeppelin provides exemplary energy concept, which uses façade insula- high-quality products and services, maintains strong Detailed information on the Zeppelin Group’s tion and heat pumps to efficiently manage heat and strategic alliances, enjoys a positive image, and has strategy, financing, and successes can be found in conserve resources. stable, future-oriented structures. the current annual report at www.zeppelin.com.

Risk Management The comprehensive risk management practices of the Zeppelin Group emphasize detecting, analyzing,

12 13 Focus on Customers

ADDING VALUE WITH PROBLEM-SOLVING COMPETENCE

Zeppelin is developing from a mixed conglomerate overview of all important data such as orders, invoic- management practices of the Rental business unit and with both manufacturing and trading activities into es, and statistics on their fleet of construction equip- granted it ISO certification. This confirms that Rental an integrated services group. For developing solu- ment. A link to the central logistics center in Cologne complies with all stipulations of the internationally tions, the company’s employees focus first and fore- optimizes the process of ordering spare parts and acknowledged DIN EN ISO 9001:2008 standard. most on the requirements and challenges of each ensures fast responses and deliveries. In 2012, Cater- Among other things, the audit covered implementation individual customer. They boost customer benefits by pillar distinguished Zeppelin for its customer portal, of the business unit’s quality policy and its documen- systematically applying their problem-solving compe- awarding it first prize in the “web marketing” category. tation of all procedures, processes, and test routines. tence to improve processes. Optimal processes DGUV Test lavished praise on the strong customer increase the quality of services, conserve resources, Component Rebuild Center focus of all employees. Rental has thus joined the and pave the way for innovations. Having opened its first component rebuild center (CRC) list of ISO-certified Zeppelin Group companies. The in Russia in 2011, Construction Equipment CIS inaugu- certification supplements the DIN OHSAS 18001- Service and Performance rated its second CRC in Armenia in 2012. Both facilities compliant status awarded to Zeppelin Industrial Zeppelin leverages its vast know-how and diverse offer Zeppelin customers complete technical overhauls Services. It is still fairly rare for a rental enterprise to portfolio to offer customers clear value adds, thus of construction and mining machines and equipment. obtain ISO certification. lifting itself above the competition. Competent The CRCs are an important step on the path of steadily employees identify each customer’s particular require- raising the quality of service. At the same time, they MaK Platinum Certificate Food Technology Center ments and build a relationship based on partnership have made Zeppelin into one of the groundbreaking ser- In 2012, the Germanischer Lloyd (GL) ship classifica- In 2012, Plant Engineering opened a 600-square-meter in accordance with these standards. The goal is for vice providers in the Russian and Armenian markets. In tion society distinguished the Marine Service MaK Food Technology Center in Rödermark. The center sup- customers to develop increasing confidence in April 2012, Caterpillar conducted an environmental division of Power Systems in Germany with a platinum plements the existing development and test centers Zeppelin’s holistic solutions and take advantage of audit of the Armenian center and handed out four stars– certificate for excellent customer service. Adhering in Friedrichshafen and Kassel. It specializes in meeting them for future projects as well. the best score achieved so far by any dealer in a CIS to the Marine Service Assessment standard estab- the needs of customers in the food industry, who can country. lished by Caterpillar, GL evaluated the division’s op- take advantage of it to test new recipes and raw ma- In addition, Zeppelin strives to maximize quality and erating procedures, order processing, repairs, spare terial mixtures and optimize processes together with efficiency. Customers reap benefits from a dense net- ISO Certification parts availability, and supply chain. It praised em- the center’s experts. The focus is consistently on indi- work of service centers and branches, fast responses In 2012, the independent auditor DGUV Test (an arm ployee’s strong service orientation and technical vidually advising customers. As an additional service, by Zeppelin’s staff, and the use of leading-edge tech- of the umbrella association of the German accident competence. The Marine Service CAT division had Zeppelin operates a customer center for meetings, nologies. The company defines high standards and prevention societies) assessed the systematic quality already received a CAT platinum certificate in 2011. training, and conferences. ensures that its quality management practices consistently comply with them. This results in excellent service, for which Zeppelin has already received multiple awards.

Practical Examples Customer Portal The online customer portal of Construction Equipment EU in Germany is clearly organized and designed for user-friendliness. Customers can quickly call up an

14 Focus on Customers

PROTECTING THE ENVIRONMENT AND CONSERVING RESOURCES

Zeppelin’s offering goes further than selling and rent- like for a new machine. In addition to spending less ing machines and building plants. As a service- for a factory-new machine, resources are conserved oriented enterprise, it supports its customers with and less waste is produced. regular maintenance, general overhauls, and repair programs. These activities prevent problems and Equipment Management downtime while reducing waste, thus making a The equipment management systems offered by major contribution to protecting the environment. Construction Equipment EU and CIS include Product Link and VisionLink from Caterpillar. These products Zeppelin also taps the potentials of sustainability by capture data on each machine’s condition, hours of continually optimizing existing processes to benefit operation, fuel consumption, and location. The customer customers. This includes the use of information tech- can access the data over the Internet. Analysis of the nologies at construction sites and developing and consumption data reveals opportunities for improving implementing turnkey energy supply projects. operating procedures and boosting efficiency–thus For improving internal processes, the activities range saving fuel and proactively preventing failures before from erecting energy-efficient buildings across recy- they can occur. These measures are supplemented by cling, waste segregation, and optimally designed programs like Caterpillar Eco-Operator, which teaches logistics all the way to an environmentally friendly operators to use machines more efficiently. motor pool. Cogeneration Plants The Power Systems business unit provides customers with turnkey distributed energy supply systems. Practical Examples Cogeneration plants, which supply both heat and Caterpillar Certified Rebuild electric power, are a cost-effective alternative to Oil Diagnosis Service Cars Within the scope of the Caterpillar Certified Rebuild purchasing electricity from the grid. Cogeneration Checks for high particulate contamination help prevent Since 2011, the Construction Equipment EU business (CCR) program, the Construction Equipment EU and plants convert about 90 percent of the primary en- wear and damage to machines. An important part of unit has been taking steps to increase the fuel effi- CIS business units completely overhaul older Cater- ergy used (natural gas) into power and heat. This this is regular testing of machine oil in Zeppelin’s labs ciency of its service vehicles in Germany. When pillar construction machines such as bulldozers, energy efficiency benefits both customers and the to give customers reliable information on the condition purchasing new vehicles, special attention is paid to wheel loaders, and dump trucks. They install as environment. Systems of this kind are already sup- of engines, axles, transmissions, hydraulics, and cool- ensuring lower fuel consumption. Tires with lower many as 7,000 different original Caterpillar parts plying a large number of municipal utilities and fa- ing systems. This lets them avert failures and reduce rolling resistance are also being introduced. These while doing so. Customers receive a like-new cilities as well as entire industrial complexes with both the frequency of oil changes and the amount of “green tires” can slash fuel consumption by up to seven

product with a long life expectancy and a warranty electricity and heat in various countries. environmentally harmful fluids requiring disposal. percent, thus significantly reducing CO2 emissions.

16 17 Focus on Customers

INNOVATION AND PROGRESS

Zeppelin works with strong partners who are them- be reduced by 50 and 90 percent, respectively. Con- Drive and Propulsion selves technology leaders and play major roles in struction machines equipped with Caterpillar’s new Solutions implementing new environmental standards. The market engine technology boast reduced fuel consumption The Power Systems business unit is an active player in launch of every new engine or construction machine is and release of soot. In 2012, Caterpillar also intro- the market for renewable energies. For instance, it preceded by extensive research and development work duced its 966K XE wheel loader: an innovative planned and supplied an integrated energy and propul- in test centers. For example, Zeppelin’s longtime manu- machine with a completely novel, split-power, con- sion package for the “Innovation”, one of the world’s facturing partner, Caterpillar, spends an average of six tinuously variable transmission that delivers up to a largest ships for installing offshore wind power plants. million U.S. dollars a day on research and development 25 percent improvement in fuel efficiency. This drive solution excels with high fuel efficiency, and operates a state-of-the-art dedicated facility, the thus enabling cost-effective, environmentally friendly Caterpillar Technical Center in Mossville, Illinois. operation, also to meet strict ceilings on emissions.

Zeppelin’s business units also work intensively to Power Systems also won a contract to supply 800 Cater- In addition, acoustically insulated machines like the develop new ideas and products. The company’s pillar C18 engines for 200 Bombardier TRAXX diesel Caterpillar wheel loaders of the 906 to 908 Series consultants for construction machines are constantly locomotives. Each locomotive is powered by four boast have noise levels below 101 dB(A), for which coming up with even better notions for deploying engines, which can be individually switched on and off they have been awarded “Blue Angel” certification on them at construction sites. The engineers and techni- as required. This translates into reduced wear, fuel account of their environmental friendliness.

cians of Plant Engineering, for example, devise consumption, and CO2 emissions. All of the engines forward-looking technologies and components for conform to the strict emission rules of the EU’s Stage Codos® Mixing and Kneading handling bulk goods. Zeppelin’s customers also IIIB standard and are designed to allow further adjust- System benefit from innovative approaches in sales and ments to comply with even tighter exhaust gas regula- The Codos® mixing and kneading system of the Plant rentals. tions in the future. They are an exemplary combination Engineering business unit was developed for use in of cost-effectiveness and environmental friendliness. large bakeries. It continuously and quickly combines all ingredients into a homogeneous mixture for making ecoRent dough. The Codos® system delivers top-quality prod- Practical Examples Increasingly, construction projects carried out in city ucts, responds instantly to fluctuations in raw materials Engine Technology centers and nature conservation areas have to meet and quality, maintains a constant processing tempera- The Construction Equipment EU business unit has strict requirements with regard to noise and exhaust ture, and consumes up to 30 percent less energy than been offering the new generation of Caterpillar en- gas emissions. With its ecoRent program, the Rental batch kneaders. gines since 2011: in the E Series crawler excavators, business unit helps them comply by equipping them the K Series wheel loaders, and the B Series articu- with special construction machines, hydraulic power MoisTec System lated trucks. These engines are based on ACERT tech- packs, aerial work platforms, generator sets and so on Industrial dough preparation and processing operations nology and fully comply with the European Union’s that are characterized by high efficiency and very low can give off large quantities of flour dust, potentially Stage IIIB emissions standard. This regulation covers emissions. In the case of the Caterpillar machines, this endangering the health of bakery workers. The MoisTec various types of construction vehicles, requiring their is mainly achieved with ACERT technology but also flour moistening system reduces flour dust by up to 98 emissions of nitrogen oxides and fine particulates to with intelligent control systems, as well as special percent. It has earned Zeppelin the coveted iba-trophy features such as particulate filters and biodegradable award for innovative developments and solutions to hydraulic oils like CAT Bio HYDO Advanced. Together, benefit the baking trade. For collaborating in the all of these features slash the consumption and emis- system’s development, the Institut für Getreideverar- sions of the electronically regulated, high-performance beitung GmbH (IGV) has received the prevention award Caterpillar engines by up to 30 percent while en- of BGN, the German accident prevention society for the hancing their performance at the same time. food and catering industries.

18 19 Our Goal SATISFIED AND WELL-TRAINED EMPLOYEES

Grafen GET OTHERS ON BOARD.

This principle stands for integration and cooperation in a spirit of partnership. Zeppelin is a committed, forward-looking employer that allows many of its employees to work autono- mously and take responsibility for their own results.

Zeppelin’s employees are systematically supported and developed to let them grow with their tasks, their team, and the company. This collaboration is marked by mutual trust and appreciation and constitutes the basis for developing new solutions and approaches.

21 Responsibility for Our Employees

CAREERS MADE EASY

Zeppelin enables young people to undergo vocational tory course to systematically prepare for training as training or complete a cooperative work-study program mechanics for agricultural and construction equip- so they will be well-prepared to begin their careers. It ment. Zeppelin is giving them a boost up by offering upholds exemplary standards of quality in training them opportunities to do practical work at various them for commercial, technical, and IT occupations. branches.

Zeppelin attaches enormous importance to cultivating Training a corporate culture that stresses equal opportunities It takes three and a half years for young men and ENCOURAGING STRENGTHS – and admission of a wide variety of trainees. As a result women to train as mechanics for agricultural and of effective long-term personnel planning, the dropout construction equipment. To acquire the correspond- STRENGTHENING SKILLS rate is very low and a high percentage of those who ing theoretical knowledge, they attend classes at the complete training enter the company’s workforce. Also Goldenberg Europakolleg in Hürth near Cologne. This afterward, Zeppelin continues to support their ongoing is supplemented by blocks of on-the-job training last- Employees of the Zeppelin Group benefit from its in- different business units. This can take the form, for education and careers. ing several weeks, during which they learn about the ternational orientation and wide-ranging training, example, of Group-wide training courses attended machines’ mechanical systems, electronics, hydrau- development, and career opportunities. Zeppelin by sales staff from all business units. lics and so on. Each year approximately 45 trainees makes a point of identifying and systematically begin the program. No matter which German branch encouraging and developing the potentials of each Practical Examples they are assigned to, they all regularly travel to individual employee, whether their strengths are in Cooperation Work-Study Hürth for classes. management or a technical field. Practical Examples Programs Group Academy A Group-wide study program was launched in 2011 in Zeppelin trains young people as plant technicians at This process is facilitated by an active culture of The Zeppelin Group Academy focuses on empowering cooperation with the Baden-Württemberg Cooperative its Friedrichshafen site; this program also lasts three open communication at all levels of the enterprise. individual employees and strengthening our corporate State University. Students receive the opportunity to and a half years. The trainees learn to build, expand, Supervisors give their staff feedback and evaluate culture. This in-house training and career platform systematically supplement what they learn in the modify, and maintain plants. Zeppelin makes a big their performance in regular one-on-one meetings. offers four comprehensive personnel development classroom with hands-on practical work experience. effort to ensure that its trainees systematically learn Skills management systems and potentials work- programs for specialists and managers. The aim is to The program makes sure that they are thoroughly about and with products; to achieve this, they are shops help to assess each worker’s strengths and develop essential skills for effectively performing their acquainted with the business units they work in while integrated into actual operations at an early stage. areas in need of improvement. They then receive roles and ensure Zeppelin’s business success. Among also learning about the rest of the enterprise and The company works closely with partner institutions support that is individually tailored to their particular other things, the academy addresses the aspects of developing networks across multiple sites. Students can such as schools and chambers of commerce and situation and needs. work organization and time management, communica- currently major in business administration/commerce, industry to ensure high-quality training. tion, leadership, project management, presentation mechanical engineering, engineering management, or Employees working in technical occupations enjoy and moderation, and knowledge related to strategy electrical engineering. access to an extensive network of Zeppelin training and business administration. and repair centers, like those in Kaufbeuren in Prevocational Year Bavaria and Friedrichshafen on Lake Constance. They Train the Trainer In Germany, the Construction Equipment EU business can gain practice in operating machines in quarries The Power Systems business unit runs a two- unit offers technically talented, motivated young peo- and gravel pits or at construction sites. They can also stage career preparation program titled “Train the ple the chance to do a prevocational year or prepara- extend their knowledge by taking advantage of Trainer” to teach employees with extensive specialist distance learning via videoconferences or Web- knowledge or skills to work as internal trainers. based training, to cite just two examples. Alongside their normal jobs, they then pass their expertise on to colleagues. This serves to spread Sales and customer service staff also receive many know-how and skills within the enterprise and ensure kinds of support. It includes regular training sessions ongoing training of specialists. As a result, Zeppelin to make sure their knowledge of product innovations is optimally prepared to deal with the constant evolu- and new service offerings is up to date and complete. tion and changes in technology and meet customers’ Attention is paid to tapping synergies between growing expectations.

22 23 Responsibility for Our Employees

STRONG AS A TEAM

Targeted mentoring, such as having experienced Welcome Days and colleagues look after new hirees, supports the Graduation Events development of each individual within the enter- Zeppelin holds “welcome days” to greet new trainees prise and makes it easier for them to assume new and students and ease their integration into the tasks. Sharing among trainees and students is facili- company. They engage in a whole range of activities tated by regular get-togethers and team building and get to personally meet the company’s top manage- activities. ment and personnel supervisors. They are also acquainted with Zeppelin’s history and organizational Managers and employees are encouraged to partici- structure, as well as its corporate culture and values. pate together in activities outside of work such as sports to support sharing of information and strength- Each year, the big day for graduating trainees of all en their team spirit. Retired employees also take part, business units rolls around: once they have passed thus maintaining their bond with Zeppelin. Active em- their journeyman’s exams, their training at Zeppelin is ployees greatly enjoy and appreciate their extensive over. They receive their certificates in a ceremony experience, expertise, and feedback. In addition, the attended by management and their trainers, relatives, Zeppelin Veterans Club (founded by former employees) and friends. organizes regular meetings and activities. Face-to-Face Events “Face-to-Face” events help management and employees stay in touch. They are regularly held at Group Practical Examples headquarters in Garching near Munich. They give Global Collaboration employees of all of the business units a chance In order to extend and facilitate collaboration across to provide input and feedback on current decisions national borders, an IT project called Global Col- and instructions issued by management. This is laboration was launched in 2011. Its goal is to har- valuable for assessing the success of measures monize the various IT systems used by the Zeppelin initiated by management in the enterprise. A case Group’s various companies. Consistent IT standards in point is the “Grafensätze”. These principles are an are being introduced for all employees worldwide. important element of Zeppelin’s corporate culture. A key component of Global Collaboration is the new The talks help management tell whether it has Zeppelin intranet, Z NET. The prerequisites for roll- adequately communicated and anchored them in ing it out throughout the Group were met in 2012. employees’ minds.

24 25 Responsibility for Our Employees

EVERYTHING IN BALANCE

Zeppelin attaches great importance to ensuring the Commerce and Industry. It focuses on thoroughly compatibility of work and family, an aspect that is cru- advising employees on things like flexible working cial for attracting well-qualified staff. Zeppelin there- hours, parental leaves, and childcare. The project’s fore takes appropriate steps to improve opportunities offering is rounded out by day care for children during for job candidates with families. Flexible hours and part- school holidays, courses to teach young people how time employment are examples of important measures to apply for jobs, and health campaigns. for ensuring family-friendly working conditions. Parent-Child Rooms In 2011, two parent-child rooms were created at Practical Examples Zeppelin Headquarters in Garching and the Cologne Reconciling Work and Family site. This project is also part of the “Family as a The Plant Engineering business unit has initiated a Success Driver” program. It supports the implemen- project called “Reconciling Work and Family” at its tation of a family-friendly personnel policy. Parents Friedrichshafen site. It is modeled after the “Family as can take advantage of the rooms if their regular a Success Driver” program for companies that is being childcare arrangement becomes temporarily unavail- implemented by the German Ministry of Family able or circumstances force them to change their Affairs, Senior Citizens, Women and Youth in collabo- plans at short notice. The rooms have a fully equip- ration with the Association of German Chambers of ped workplace as well as games and toys.

PLAYING IT SAFE

Occupational safety is very important to Zeppelin. It mark is bestowed to confirm the effectiveness of a therefore provides transparent, easily accessible in- company’s systematic occupational safety measures formation on health and work-related safety issues and management. Both of these business units have for all employees to take advantage of. In order to outstandingly complied with the BGHW’s high learn how to responsibly use machines, for example, standards and stringent safety criteria. employees can access information on risks and safety procedures. Courses are also regularly held in Safety in Mining the company’s own training centers. These measures A customer of the Zeppelin Group operates an iron serve to prevent work-related accidents and injuries. ore mine near the Ukrainian city of Komsomolsk. The local service team must of course follow international safety regulations. Zeppelin works with its partner, Practical Examples Caterpillar, to ensure strict compliance with these Quality Mark rules. The measures taken include properly securing In 2011 the German Accident Prevention Society for machines, issuing protective clothing to personnel, the Retail and Merchandise Distribution Sectors and providing instruction on occupational safety and (BGHW) awarded the “Sicher mit System” (systema accident prevention. Zeppelin is applying its compre- tically safe) quality mark to the Construction Equip- hensive safety expertise to ensure the adoption of ment EU and Rental business units in Germany. This Western standards by all of its customers.

26 27 Our Commitment OUR OBLIGATION TO CREATE A BETTER FUTURE

Grafen LEAVE THEIR FOOTPRINT.

This Zeppelin principle stresses values that also marked the actions of Ferdinand Graf von Zeppelin: commitment, courage, and conviction.

These values are still very much alive in the Zeppelin Group today. They are the basis for responsible action, but that isn’t all. Even more importantly, they constitute an obligation to pitch in and work toward a better future for everyone. From Zeppelin’s perspective, business and social involvement don’t contradict one another; in fact, they are intimately linked. The company therefore sends a clear message by fostering education and science, culture and sports, and community projects.

29 SOCIAL INVOLVEMENT

TRUST AND COMPLIANCE EDUCATION FOR THE FUTURE

Within the Zeppelin Group, compliance is defined Practical Examples Zeppelin attaches great importance to education by three cornerstones: observance of laws and and science. As an enterprise with deep roots in Code of Conduct legal requirements, each individual employee’s Friedrichshafen, Zeppelin supports initiatives and A brochure titled “Code of Conduct: Business Ethics personal conscience, and our corporate culture. education institutions in the region and beyond. The and Compliance” provides an ethical and legal Group sees activities to train and promote the devel- framework. Its 10 chapters explain all of the as- Important issues related to compliance are regu- opment of young people as an important investment pects of compliance that are relevant to Zeppelin. larly discussed and explained in Group-wide dialogs in the future. The basic principles include avoidance discrimina- and communication media such as the Zeppelin tion, conflicts of interest, bribery, and corruption, employee magazine. In addition, employees are Young people are actively supported in preparing for and a commitment to doing business sustainably. trained as compliance officers so they can capably their lives and careers, and their potentials are iden- The code has already been distributed to all of answer others’ questions on related subjects. tified. In doing this, Zeppelin greatly encourages its the Zeppelin Group’s more than 7,000 employees staff to share ideas with students and teachers. The in German, English, Czech, or Russian and supple- Each individual employee is responsible for practic- emphasis is on closely linking theory and practice. mented by courses. ing compliance. Staff can also count on their supervisors and management to support them in this. If an employee isn’t sure how to deal with a situation, E-Learning Program management is obliged to make the decision free The e-learning program “Zeppelin Code of Conduct Practical Examples Zeppelin University of all outside influences, in keeping with Zeppelin’s and Compliance Basics” raises employees’ awareness The Zeppelin Youth The Zeppelin Group also backs Zeppelin University values and compliance rules. of compliance-relevant situations in the context of Foundation JUST! (ZU), which was founded in Friedrichshafen in 2003. their everyday work. The staff of the Zeppelin Group The Zeppelin Youth Foundation JUST! resumed its Currently more than a thousand students are enrolled are responding with great interest to the theme of work in 2012. Its main focus is on promoting students. in bachelor’s and master’s degree programs at this compliance, as is reflected in the very large number Prizes of up to 25,000 euros are awarded for out- private but state-accredited university. Zeppelin who have already completed the e-learning program. standing projects in the fields of science, technology, University enjoys an excellent reputation, in large part So far the program has been made available to economics, and social and cultural studies. In 2012, because it is the first private university in the German colleagues in the German-speaking parts of Europe. for example, students of the Baden-Württemberg Co- state of Baden-Württemberg to receive the right to English- and Russian-language versions and an operative State University (DHBW) received a sum of confer doctorates. Occupying a place high in the rank- in-depth module on dealing with corruption risks are more than 7,500 euros for their study of environmen- ing of German universities, Zeppelin University isn’t currently being prepared. tally compatible mobility concepts. Titled “Electric just popular with students. The residents of the Drive & Infrastructure” (EDI), it dealt with the possi- city of Friedrichshafen also benefit from events and bilities of electric vehicles and the technical, econom- courses it organizes. ic, and sociological barriers to their use. The Zeppelin Youth Foundation JUST! systematically fosters the The Zeppelin Group and Zeppelin University are linked inventiveness of young people in science and by close collaboration. For instance, qualified and research. It also seeks to get them interested in the committed employees are being actively supported in Zeppelin Group as a potential employer: an employer their endeavors to complete masters’ degrees there. that offers career novices exciting perspectives along As another point of contact, Zeppelin University offers with a diverse range of products and services and tailor-made management development programs for attractive training and study opportunities. Zeppelin managers.

31 SOCIAL INVOLVEMENT

SPONSORING SPORTS AND CULTURE

Fair play and sportsmanship are deeply ingrained in Zeppelin’s corporate culture. Zeppelin therefore actively sponsors sports. Zeppelin is also committed to making a difference in the realm of culture by back- ing regional art projects and international culture initiatives.

Practical Examples VfB Volleyball Zeppelin is the main sponsor of the VfB Friedrichs- hafen men’s volleyball team, which has won multiple trophies including the German championship 12 times and the CEV Champions League. Zeppelin has culti- vated an excellent relationship with this athletic club for many years.

Zeppelin Sportpark Since 2011, Zeppelin has been supporting the Zeppelin Sportpark in Garching near Munich. Its centerpiece is a triple-size, partitionable gymnasium that provides ideal conditions for training and holding competitions. There is also a 50-meter running track, a climbing room, a weightlifting room, several gym- nastics rooms, and outdoor beach volleyball courts. © VfB Friedrichshafen Volleyball Art in Kluftern In Kluftern, a borough of the city of Friedrichshafen, the Zeppelin Group is supporting an outstanding art project called “Art in Kluftern” involving local and regional artists. It has already attracted attention from far beyond the area. Integrated into the walking path that circles around Kluftern are 12 large sculp- tures depicting artists’ ideas on the theme of “gate”. The fascinating artworks are fashioned from an array

32 33 SOCIAL INVOLVEMENT

WITH COMMITMENT AND FEELING

The Zeppelin Group transfers part of its profits to the in previous years. So that a South African child could Zeppelin Foundation in Friedrichshafen. All of this obtain necessary surgery, the company gave another money ultimately benefits nonprofit, community, and 5,000 euros to the organization “Home from Home”. social projects. The Zeppelin Group sent 4,200 euros to the Clemens Maria Children’s Home in Putzbrunn near Munich, The Zeppelin Foundation is especially active in which was founded in 1916. Most of this money, advancing science and research, art and culture, and which is going to support the construction of a new assistance for children and young people. For exam- branch of the home, was donated by Zeppelin ple, it supports a considerable number of facilities in employees. The home for children with special and around Friedrichshafen, including daycare and educational needs is now teaching and coaching 150 youth centers, a music school, the local adult educa- children and adolescents aged three to 18. tion school, and the municipal culture office, which organizes some 300 events a year. The overriding goal The Zeppelin Group is also supporting the campaign is greater quality of life for all residents. “Häfler Helfen”, which provides direct, unbureau- cratic assistance to disadvantaged people in But Zeppelin’s social involvement isn’t limited to chan- Friedrichshafen. All of the donated money goes to neling funds to the Zeppelin Foundation. The company help persons in need without any deductions for also provides major support to nonprofit projects and administrative costs or other fees. initiatives, especially for providing assistance to children and young people. This support takes the form of Voluntary Work by both funding and voluntary work by employees. Employees Employees of the Construction Equipment CIS business unit have demonstrated initiative and personal willingness to help: in 2011 and 2012 they Practical Examples rolled up their sleeves to renovate the children’s Donations homes in the Armenian cities of Gavar and Gyumri, In 2012, Zeppelin donated 7,500 euros to the St. Anna also donating money and items. Children’s Hospital and attached Children’s Cancer Research Institute in Vienna. Since 1988, this institu- In 2012, Zeppelin employees expressed their solidar- tion has ranked among the most important centers of ity in a typing drive to identify suitable donors of oncological research and enjoys an excellent reputa- lifesaving blood stem cells. The initiative was carried tion worldwide. The work that its team of scientists out at Zeppelin Headquarters in Garching in coope- has been doing for many years is exemplary within ration with the Bavarian Foundation for Bone Europe; it has set many new milestones while study- Marrow Donations. The goal was to find and register ing and treating cancer in children. Zeppelin also once as many potential donors as possible. A total of 605 again donated 5,000 euros to German Cancer Aid like persons showed up. Zeppelin bore the costs.

34 35 Perspectives

SIGHTS SET ON SUCCESS Outlook and Goals – a Selection

Investments Focus on Service The Zeppelin Group is continuing to make strategi- A new division has been established within the cally sensible investments to boost its competitive- Rental business unit: Zeppelin Industrial Services. ness in Germany and elsewhere. These investments This step once again significantly extends the port- secure jobs, increase Zeppelin’s attractiveness as an folio while setting the stage for winning new employer, and ensure the company’s long-term busi- customer groups. The division offers professional ness success. A major event in 2013 is the inaugura- industrial and plant management for power chemical, tion of a new sales and service center at the Hamm petrochemical, pipeline, and wind power industries. site in the German state of North Rhine-Westphalia, where the Group has been active for 50 years. Resource Conservation The new center optimally meets the prerequisites for The Power Systems business unit is expanding its providing better-than-ever service. division for used equipment in its Bremen facility. Under the Premium Preowned name, since 2012 it has been offering customers professionally overhauled, upgraded, and certified engines and generator sets based on Caterpillar and MaK engines. The main figure for the EU as a whole is 3.2 million tonnes. staff as well as trainees. A project dubbed “Zeppelin benefits of these quality-certified sets are cost savings The Plant Engineering business unit has brought its as an Employer Brand” is aimed at improving the compared to purchasing a new one and efficient new, globally unique Pyrolyx process for recycling company’s attractiveness in the labor market and further use of materials. used tires to market maturity. In a pilot plant, it has mastering the challenges posed by demographic already succeeded in recovering oil, gas, and espe- shifts. A project team culled from the Group’s person-

CO2 Ceilings for Motor Pool cially valuable carbon black from old tires. nel departments has developed strategies and In 2013 the management of the Zeppelin Group is measures for “employer branding” that are being put developing a uniform Group-wide guideline for its Management into practice starting in 2013.

motor pool, including CO2 ceilings for the first time. Zeppelin is kicking off the Group-wide introduction of a new, consistent corporate design in 2013. The Compliance Innovativeness switch will take an anticipated two years, but is In 2012, Zeppelin’s employees in the German-speaking The world’s first Caterpillar 336 EH hybrid excavator guaranteed to optimally set Zeppelin apart from its parts of Europe participated in an e-learning program begins shipping in 2013. This excavator model fea- competitors. The new corporate design reflects the called “Zeppelin Code of Conduct and Compliance tures an intelligent technology that uses hydraulic company’s philosophy and culture and will strengthen Basics”. English- and Russian-language versions and pressure accumulators to slash fuel consumption customers’ confidence in the Zeppelin brand on a an intensive supplementary module on corruption risks by up to 30 percent with a corresponding reduction long-term, sustainable basis. have been prepared and will be introduced Group- in carbon dioxide emissions. wide during the course of 2013. Appropriate guides Workforce for helping employees to make decisions and manage In Germany alone, around 630,000 tonnes of old The Zeppelin Group attaches great importance to compliance risks are also being developed and made tires are removed from service each year, and the recruiting and promoting technical and managerial available throughout the Group.

36 37 ABOUT THIS PUBLICATION

ZEPPELIN GmbH

Headquarters Graf-Zeppelin-Platz 1 85748 Garching near Munich Germany Phone +49 89 320 00 - 0 Fax +49 89 320 00 - 482

Company Seat Graf-Zeppelin-Platz 1 88045 Friedrichshafen Germany Phone +49 7541 202 - 02 Fax +49 7541 202 - 210

Corporate Communication E-mail [email protected]

More information on Zeppelin is available at www.zeppelin.com

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38 39 ZEPPELIN GmbH Graf-Zeppelin-Platz 1 88045 Friedrichshafen, Germany

Headquarters: Graf-Zeppelin-Platz 1 85748 Garching near Munich, Germany

Phone +49 89 320 00 - 0 Fax +49 89 320 00 - 482 [email protected] www.zeppelin.com